Sales reported on the income statement totaled $782,000. The beginning balance in accounts receivable was $102,000. The ending balance in accounts receivable was $120,000. Under the direct method of determining the net cash provided by (used in) operating activities on the statement of cash flows, sales adjusted to a cash basis are:
A) $800,000
B) $764,000
C) $680,000
D) $902,000

Question

Quizplus · Accepted Answer

To adjust sales to a cash basis, we need to subtract the increase in accounts receivable from the total sales, which gives:

$782,000 - ($120,000 - $102,000) = $764,000

Therefore, the correct answer is B) $764,000.

Sales Reported on the Income Statement Totaled $782,000